China BAK Battery Touts India Growth, AI Backup Power and Undervalued Stock

Key Points

• China BAK Battery highlighted strong growth in India and Southeast Asia, saying Indian light electric vehicles are likely to drive future revenue and that the company is in discussions or already supplying several top EV manufacturers there.
• The company is also pitching a new growth area in data center and AI backup power, with an updated Model 26 battery product being tested by AI operators and positioned for backup battery units.
• CBAK argued its shares are undervalued, citing fiscal 2025 revenue of $195 million, positive adjusted EBITDA, and a stock valuation of just 0.36 times trailing sales versus peers.

China BAK Battery NASDAQ: CBAT, referred to in a company presentation as CBAK Energy, outlined its growth strategy, customer base and valuation case during a recent investor event, emphasizing its position in cylindrical lithium iron phosphate battery cells and its expansion opportunities in electric mobility, energy storage and backup power.

Company representative Clara Blady said CBAK is a “commercially proven NASDAQ-listed battery company” with 25 years of experience in lithium and sodium-ion battery technologies. She said the company generated $195 million in net revenue in fiscal 2025 and currently operates 8.3 gigawatt-hours of annual battery cell capacity, with the ability to expand to as much as 38 GWh across its existing platform.

Blady said CBAK’s customer base includes Anker, Viessmann, Ather, VARTA, Schneider Electric, Bajaj and Spiro. She added that the company serves customers in more than 40 countries and has maintained its top five customers for an average of five years. The company currently carries a $32 million backlog, according to the presentation.

Company Highlights Cylindrical Battery Focus

CBAK positioned its large cylindrical battery cells as a core differentiator. Blady said the company’s product portfolio includes its Model 26 series, Model 32 series and Model 40 series, as well as a sodium-ion cell offering. She said the Model 32 series has been adopted by customers including Anker and Spiro.

Blady said cylindrical cells offer safety and economic advantages because pressure is distributed evenly within the cell. She said CBAK’s larger-format cylindrical cells have approximately 15% lower manufacturing costs, 25% higher energy density and up to eight times the capacity of traditional-size cells.

The company said it has shipped more than 70 million cells with zero safety incidents. Blady also said CBAK holds 434 patents and reinvests 7.7% of sales into research and development, with 17% of staff dedicated to research.

In response to a question about safety, Chief Financial Officer Thierry Li said CBAK’s use of lithium iron phosphate chemistry, rather than nickel manganese cobalt chemistry, contributes to lower fire risk. He also said cylindrical cell design helps vent internal gas and heat. Li cited the company’s work with Viessmann since 2021, saying there had been zero incidents related to that business.

India and Southeast Asia Seen as Key Growth Markets

During the question-and-answer portion, Li said Southeast Asia and South Asia have been major areas of focus over the past two years. He said CBAK has reached out to the top 10 light electric vehicle manufacturers in India, with almost all either purchasing cells from the company or in serious business negotiations.

Li said India is expected to remain the company’s largest and fastest-growing market among the regions discussed. He said light electric vehicles are likely to represent a larger share of future revenue, driven primarily by sales in India.

“The faster Indian market grows, we believe that the faster we will grow,” Li said, noting that CBAK’s cylindrical LFP cells are well-suited for two- and three-wheeler applications because of space constraints in those vehicles.

Li also said CBAK is partnering with one of the top two light electric vehicle manufacturers in Vietnam, which has become one of the company’s largest customers.

Capacity Expansion and Supply Chain Strategy

Blady said CBAK operates four strategic facilities in China. Its Dalian site currently runs at 3.3 GWh and can expand to 16 GWh, while its Nanjing site operates at 4.5 GWh with a design capacity of 20 GWh. The Changzhou facility adds 0.5 GWh and can expand to 2 GWh.

The company also operates Hitrans Technology, a materials subsidiary in Shaoxing, Zhejiang Province. Blady said Hitrans has 26,000 tons of annual cathode and precursor capacity, with total capacity of up to 37,000 tons. She said the subsidiary gives CBAK greater control over raw material costs and supply chain stability.

CBAK is also planning a Southeast Asia facility targeted for 2028. Blady said the planned facility would add 3 GWh of capacity and help mitigate geopolitical risks, strengthen supply chains and support global customers more competitively.

Asked about raw material costs, Li said CBAK sources processed lithium carbonate from Chinese domestic suppliers rather than directly sourcing ore. He said the company uses futures as a hedging instrument, as disclosed in its Form 10-Q, to manage lithium carbonate price increases.

Financial Performance and Valuation Case

Blady said residential storage and uninterruptible power supplies accounted for about 65% of fiscal 2025 revenue, while light electric vehicles accounted for 34%. At the group level, she said CBAK posted gross profit of $18.42 million and positive adjusted EBITDA of $7.05 million in fiscal 2025.

For the first quarter of 2026, Blady said group net revenue reached $69.62 million, up about 99.3% from the prior-year quarter. She said Hitrans recorded net income of $1.57 million during the quarter.

The company also argued that its stock trades at a discounted valuation compared with peers. Blady said CBAK was trading at 0.36 times trailing 12-month sales, with a market capitalization of approximately $70 million. She compared that figure with peer sales multiples and said the valuation gap reflected “perception and not business reality.”

Asked about financing growth, Li said CBAK is always looking for financing opportunities but noted that management views the stock as “deeply undervalued,” making public financing difficult. He said the company has discussed private equity financing for Southeast Asian projects and some domestic factories in China, but said its low U.S. holding company market capitalization has complicated those conversations.

Data Center Backup Power Opportunity

Li also discussed potential opportunities in the data center market. He said CBAK is preparing to launch an updated full-tab version of its Model 26 series, which he said could be suitable for backup battery units used in data centers and AI infrastructure.

Li said the new product has already been tested and validated by “some of the very famous AI operators,” though he cautioned that the company could not guarantee how potential deals would progress. He said management believes the product could gain market traction after launch.

In closing remarks, Li said the company remains on a fast-growing track but faces cost pressure from rising raw material prices. He said CBAK’s major targets for the year include continued growth in India, Vietnam and key European markets.

About China BAK Battery NASDAQ: CBAT

China BAK Battery Inc NASDAQ: CBAT is a China-based developer and manufacturer of rechargeable lithium-ion batteries and related power solutions. The company's core product lines include small, medium and large format batteries, battery modules and pack assemblies designed for consumer electronics, electric vehicles, energy storage systems and other industrial applications. China BAK Battery offers polymer lithium-ion cells, prismatic and cylindrical cells, as well as integrated battery systems tailored to meet the performance requirements of its clients.

Founded in 2001 and headquartered in Shenzhen, China BAK Battery has expanded its manufacturing footprint and research and development capabilities over the years to serve customers across Asia, Europe and North America.

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